Manufacturing production rose robustly in April, according to the Federal Reserve. NAM Chief Economist Chad Moutray broke it down for us.
Topline numbers: “Manufacturing production rose 0.8% in April, matching the gain in March and expanding strongly for the third straight month,” said Moutray.
- “In April, durable and nondurable goods production increased 1.1% and 0.3%, respectively.”
- “Overall, manufacturing production has risen 5.8% year-over-year, with 4.6% growth relative to February 2020’s pre-pandemic pace.”
- “The index for manufacturing production in April was the best reading since July 2008.”
The big picture: “These data continued to show the resilience of the sector, which reported robust growth despite significant challenges from supply chain bottlenecks, workforce shortages, soaring production costs and COVID-19,” said Moutray.
- “Indeed, manufacturing capacity utilization jumped from 78.6% in March to 79.2% in April, the highest reading since April 2007.”
Zooming out: “Meanwhile, total industrial production rose 1.1% in April, up from 0.9% in March and with the industrial production index reaching a new high,” said Moutray.
- “In addition to manufacturing, output also climbed higher for mining (up 1.6%) and utilities (up 2.4%).”
- “On a year-over-year basis, industrial production has increased 6.4%, and over the past 12 months, mining and utilities output rose 8.6% and 7.5%, respectively.”